Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $560 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 840 canoes. Prepare a contribution margin income statement for the company 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $80,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold 490 560 710 Total costs Variable Costs $ 73,990 Fixed Costs 165, 130 Total Costs $ 239,120 $ 0 $ 0 Cost per Unit Variabio Cost per Unit Sandy Bank, Inc., makes one model of wooden canoe, and the information for it follows: 950 Number of canoes 600 800 produced and sold Total costs Variable costs $129,000 $172,000 Fixed costs $228,000 $228,000 Total costs $357,000 $400,000 Cost per unit Variable cost per unit $ 215.00 $ 215.00 Fixed cost per unit 380.00 285.00 Total cost per unit $ 595.00 $ 500.00 $204,250 $228,000 $432,250 $ 215.00 240.00 $ 455.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,620 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $140,000 profit. Complete this question by entering your answers in the tabs below. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Before After Automation Automation Sales revenue $195,000 $195,000 Less: Variable 97,000 57,000 cost Contribution $ 98,000 $ 138,000 margin Less: Fixed 19,000 59,000 cost Net $ 79,000 $ 79,000 operating income Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Lobster Trap's break-even sales dollars before and after automation. (Round your contribution margin ratio to 4 decimal places and final answers to 2 decimal places.)
